Which of the Following Is Not True with Respect to Fixed

question 31

Multiple Choice

Which of the following is not true with respect to fixed price redetermination contracts (FPR) ?

• A) A FFP is set for an initial period of the contract
• B) A redetermination (upward or downward) occurs at a stated time during the contract
• C) FPR prospective almost always occurs at the middle point in time of the contract
• D) FPR prospective is used where a fair and reasonable price can be developed for initial periods but not subsequent periods
• E) FPR Retroactive is used when uncertainty exists as in the prospective, but the amount of the contract is small and/or the performance period is short

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Definitions:

Global Escalation

The process by which conflicts or situations increase in intensity or scale on a worldwide level, often leading to widespread consequences.

World War I

A global conflict that lasted from 1914 to 1918, involving many of the world's powers and marking one of the deadliest conflicts in history.